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FRONTEO

Nasdaq:FTEO
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FTEO
Nasdaq
¥12B
Market Cap
  1. Home
  2. US
  3. Software
Company description

FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in Japan, the United States, Korea, and internationally. The last earnings update was 92 days ago. More info.


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FTEO Share Price and Events
7 Day Returns
4.7%
NasdaqGS:FTEO
0.9%
US IT
1.3%
US Market
1 Year Returns
-48.2%
NasdaqGS:FTEO
36.3%
US IT
21%
US Market
FTEO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FRONTEO (FTEO) 4.7% - - -48.2% -60.7% -70.5%
US IT 0.9% 5.6% 13.5% 36.3% 100.1% 125.8%
US Market 1.3% 2.6% 9.1% 21% 40.5% 54.4%
1 Year Return vs Industry and Market
  • FTEO underperformed the IT industry which returned 36.3% over the past year.
  • FTEO underperformed the Market in United States of America which returned 21% over the past year.
Price Volatility
FTEO
Industry
5yr Volatility vs Market

FTEO Value

 Is FRONTEO undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FRONTEO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FRONTEO.

NasdaqGS:FTEO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FTEO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
IT Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 30.86%) (56.52%))
1.194
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.194 * 6.33%)
9.3%

Discounted Cash Flow Calculation for NasdaqGS:FTEO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FRONTEO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:FTEO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 9.3%)
2020 751.69 Est @ 8.14% 687.75
2021 798.43 Est @ 6.22% 668.37
2022 837.34 Est @ 4.87% 641.32
2023 870.28 Est @ 3.93% 609.85
2024 898.79 Est @ 3.28% 576.25
2025 924.09 Est @ 2.81% 542.07
2026 947.12 Est @ 2.49% 508.32
2027 968.59 Est @ 2.27% 475.62
2028 989.01 Est @ 2.11% 444.34
2029 1,008.78 Est @ 2% 414.67
Present value of next 10 years cash flows ¥5,568.00
NasdaqGS:FTEO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ¥1,008.78 × (1 + 1.74%) ÷ (9.3% – 1.74%)
¥13,580.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥13,580.60 ÷ (1 + 9.3%)10
¥5,582.44
NasdaqGS:FTEO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥5,568.00 + ¥5,582.44
¥11,150.44
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥11,150.44 / 38.15
¥292.29
NasdaqGS:FTEO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NasdaqGS:FTEO represents 0.01752x of TSE:2158
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.01752x
Value per Share
(Listing Adjusted, USD)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 292.29 x 0.01752
$5.12
Value per share (USD) From above. $5.12
Current discount Discount to share price of $5.59
= -1 x ($5.59 - $5.12) / $5.12
-9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of FRONTEO is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for FRONTEO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FRONTEO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FTEO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in JPY ¥-28.05
TSE:2158 Share Price ** TSE (2020-02-12) in JPY ¥319
United States of America IT Industry PE Ratio Median Figure of 65 Publicly-Listed IT Companies 33x
United States of America Market PE Ratio Median Figure of 2,895 Publicly-Listed Companies 18.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FRONTEO.

NasdaqGS:FTEO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:2158 Share Price ÷ EPS (both in JPY)

= 319 ÷ -28.05

-11.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FRONTEO is loss making, we can't compare its value to the US IT industry average.
  • FRONTEO is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does FRONTEO's expected growth come at a high price?
Raw Data
NasdaqGS:FTEO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -11.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America IT Industry PEG Ratio Median Figure of 56 Publicly-Listed IT Companies 2.65x
United States of America Market PEG Ratio Median Figure of 2,004 Publicly-Listed Companies 1.62x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for FRONTEO, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on FRONTEO's assets?
Raw Data
NasdaqGS:FTEO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in JPY ¥86.42
TSE:2158 Share Price * TSE (2020-02-12) in JPY ¥319
United States of America IT Industry PB Ratio Median Figure of 118 Publicly-Listed IT Companies 4.24x
United States of America Market PB Ratio Median Figure of 5,096 Publicly-Listed Companies 1.81x
NasdaqGS:FTEO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:2158 Share Price ÷ Book Value per Share (both in JPY)

= 319 ÷ 86.42

3.69x

* Primary Listing of FRONTEO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FRONTEO is good value based on assets compared to the US IT industry average.
X
Value checks
We assess FRONTEO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. FRONTEO has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FTEO Future Performance

 How is FRONTEO expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as FRONTEO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FRONTEO expected to grow at an attractive rate?
  • Unable to compare FRONTEO's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare FRONTEO's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare FRONTEO's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FTEO Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:FTEO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FTEO Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqGS:FTEO Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-09-30 10,561 -1,071
2019-06-30 11,089 -531
2019-03-31 11,262 52
2018-12-31 11,651 761
2018-09-30 12,091 1,599 409
2018-06-30 12,411 -130
2018-03-31 12,332 1,417 -725
2017-12-31 12,047 -1,290
2017-09-30 11,822 -744 -1,296
2017-06-30 11,093 -1,147
2017-03-31 11,203 -198 -948
2016-12-31 11,179 -1,246

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if FRONTEO is high growth as no earnings estimate data is available.
  • Unable to determine if FRONTEO is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FTEO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from FRONTEO Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FTEO Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqGS:FTEO Past Financials Data
Date (Data in JPY Millions) EPS *
2019-09-30 -28.05
2019-06-30 -13.91
2019-03-31 1.37
2018-12-31 19.98
2018-09-30 10.74
2018-06-30 -3.43
2018-03-31 -19.08
2017-12-31 -34.03
2017-09-30 -34.62
2017-06-30 -31.08
2017-03-31 -26.07
2016-12-31 -34.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if FRONTEO will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. FRONTEO's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  2. FRONTEO's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess FRONTEO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FRONTEO has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FTEO Past Performance

  How has FRONTEO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FRONTEO's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FRONTEO does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare FRONTEO's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare FRONTEO's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
FRONTEO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FRONTEO Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FTEO Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 10,561.07 -1,070.75 4,898.46
2019-06-30 11,089.07 -530.75 4,967.46
2019-03-31 11,262.07 52.25 4,689.46
2018-12-31 11,651.06 760.74 4,441.43
2018-09-30 12,091.06 408.74 4,525.43
2018-06-30 12,411.06 -130.26 4,619.43
2018-03-31 12,332.06 -725.26 5,058.43
2017-12-31 12,047.04 -1,290.09 5,405.50
2017-09-30 11,822.04 -1,296.09 5,584.50
2017-06-30 11,093.04 -1,147.09 5,645.50
2017-03-31 11,202.73 -948.07 5,540.62
2016-12-31 11,179.29 -1,245.63 5,141.77
2016-09-30 11,345.29 -794.63 5,161.77
2016-06-30 11,595.29 -573.63 5,018.77
2016-03-31 10,529.29 -417.63 4,394.81
2015-12-31 9,429.62 -124.55 4,106.31
2015-09-30 7,813.62 -154.55 3,408.31
2015-06-30 6,687.62 118.45 2,918.31
2015-03-31 6,279.62 218.45 2,776.31
2014-12-31 5,423.69 110.65 2,686.46
2014-09-30 4,965.69 57.65 2,608.46
2014-06-30 4,247.69 -369.35 2,466.46
2014-03-31 4,173.69 -448.35 2,497.34
2013-12-31 4,367.28 -257.98 2,395.18
2013-09-30 4,433.69 -9.98 2,304.02
2013-06-30 4,622.69 305.02 2,076.02
2013-03-31 4,699.69 596.02 1,949.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if FRONTEO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if FRONTEO has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if FRONTEO improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess FRONTEO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
FRONTEO has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FTEO Health

 How is FRONTEO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FRONTEO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FRONTEO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FRONTEO's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of FRONTEO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FRONTEO Company Filings, last reported 4 months ago.

NasdaqGS:FTEO Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 3,356.00 6,878.00 3,059.00
2019-06-30 3,867.00 7,012.00 3,413.00
2019-03-31 4,622.00 6,758.84 3,926.01
2018-12-31 4,682.00 6,917.00 4,553.00
2018-09-30 4,893.00 6,977.00 4,114.00
2018-06-30 4,578.00 7,003.00 4,126.00
2018-03-31 4,437.05 7,755.26 4,976.92
2017-12-31 4,027.00 7,587.00 4,168.00
2017-09-30 4,396.00 7,425.00 3,692.00
2017-06-30 4,904.00 7,619.00 3,860.00
2017-03-31 5,018.68 7,886.88 4,536.43
2016-12-31 4,174.00 8,880.00 4,323.00
2016-09-30 3,538.00 6,092.00 2,143.00
2016-06-30 3,977.00 4,811.00 1,813.00
2016-03-31 4,440.55 4,647.24 1,797.04
2015-12-31 5,014.00 4,745.00 2,254.00
2015-09-30 5,014.00 4,632.00 2,353.00
2015-06-30 5,264.00 1,194.00 2,527.00
2015-03-31 5,248.35 1,269.58 2,719.32
2014-12-31 5,153.00 590.00 2,095.00
2014-09-30 5,068.00 610.00 1,903.00
2014-06-30 3,627.00 727.00 1,237.00
2014-03-31 3,621.61 731.08 1,479.51
2013-12-31 3,787.00 780.00 1,475.00
2013-09-30 3,783.00 524.00 1,335.00
2013-06-30 4,044.00 567.00 1,959.00
2013-03-31 3,376.97 635.55 1,295.96
  • FRONTEO's level of debt (204.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (12% vs 204.9% today).
  • Debt is well covered by operating cash flow (23.3%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on FRONTEO's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess FRONTEO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FRONTEO has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FTEO Dividends

 What is FRONTEO's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.94%
Current annual income from FRONTEO dividends.
If you bought $2,000 of FRONTEO shares you are expected to receive $19 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • FRONTEO's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • FRONTEO's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:FTEO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1960 Stocks 2.2%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FTEO Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
NasdaqGS:FTEO Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-06-14 3.000 0.921
2019-05-15 3.000 0.813
2018-05-15 3.000 0.379
2018-02-14 0.000 0.000
2017-11-14 0.000 0.000
2017-08-14 0.000 0.000
2017-07-31 0.000 0.000
2017-06-14 0.000 0.000
2017-05-15 0.000 0.000
2017-02-14 0.000 0.000
2016-11-14 0.000 0.000
2016-08-15 0.000 0.000
2016-06-10 0.000 0.000
2016-05-16 0.000 0.000
2015-05-13 3.000 0.354
2014-07-31 3.000 0.330
2014-05-14 3.000 0.468
2013-07-31 5.000 1.540
2013-05-15 5.000 1.365
2012-08-09 5.000 0.907
2012-06-25 5.000 0.791
2012-05-15 5.000 0.747
2012-02-10 1.250 0.142
2011-11-11 1.250 0.177
2011-08-11 1.250 0.184
2011-08-09 1.250 0.300
2011-05-11 1.250 0.595
2010-02-12 0.000 0.000
2009-11-11 0.300 0.610
2009-08-11 0.300 0.561
2009-06-24 0.300 0.554
2009-05-15 0.300 0.579

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of FRONTEO's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess FRONTEO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FRONTEO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FRONTEO has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FTEO Management

 What is the CEO of FRONTEO's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Masahiro Morimoto
AGE 53
TENURE AS CEO 16.5 years
CEO Bio

Mr. Masahiro Morimoto founded FRONTEO, Inc. since August 2003 and has been its Chairman of the Board and Chief Executive Officer since August 2003. Mr. Morimoto has been Executive Chairman at FRONTEO Healthcare, Inc. since May 2, 2017. He has been the Chairman and Chief Executive Officer of UBIC North America Inc., since Jun 2010 and March 2011 respectively. Mr. Morimoto served as the President of UBIC North America, Inc. and also served as President of FRONTEO, Inc. since August 2003. Mr. Morimoto founded UBIC, Inc., in August 2003. Mr. Morimoto served in various senior executive positions at UBIC, Inc.'s principal subsidiary, UBIC North America, since 2007. Prior to establishing UBIC, Mr. Morimoto worked in various professional positions for the Japan Maritime Self-Defense Force from March 1989 to 1995 and in various capacities at Applied Materials Japan, Inc., a wholly-owned subsidiary of Applied Materials, Inc., from 1995 to 2003. He joined Applied Materials Japan Co., Ltd., in April 1995. He has been Representative Director of FRONTEO, Inc. since August 2003. He has been a Director of UBIC, Inc., since August 2003. He serves as a Director at FRONTEO Healthcare, Inc.

CEO Compensation
  • Insufficient data for Masahiro to compare compensation growth.
  • Insufficient data for Masahiro to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the FRONTEO management team in years:

5.6
Average Tenure
49.5
Average Age
  • The average tenure for the FRONTEO management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Masahiro Morimoto

TITLE
Founder
AGE
53
TENURE
16.5 yrs

Tomohiro Uesugi

TITLE
CFO, Chief Administrative Officer & Director
AGE
49

Naritomo Ikeue

TITLE
Executive VP
AGE
47
TENURE
12.3 yrs

Hideki Takeda

TITLE
CTO, Director of Behavior Informatics Laboratories & Director
AGE
46
TENURE
7.1 yrs

Shusaku Nozaki

TITLE
Corporate Officer & GM of Regional Operations - Japan
AGE
44

Yoshikatsu Shirai

TITLE
Corporate Officer
AGE
54

Margaret Lilani

TITLE
Senior Vice President of Review and Professional Services
TENURE
4.1 yrs

Seiji Tezuka

TITLE
Corporate Officer
AGE
55
TENURE
3 yrs

Mari Yamamoto

TITLE
Corporate Officer
AGE
50
TENURE
0.6 yrs

David Wang

TITLE
Chief Executive Officer of UBIC Taiwan Inc
Board of Directors Tenure

Average tenure and age of the FRONTEO board of directors in years:

9.7
Average Tenure
53
Average Age
  • The tenure for the FRONTEO board of directors is about average.
Board of Directors

Tomohiro Uesugi

TITLE
CFO, Chief Administrative Officer & Director
AGE
49
TENURE
1.6 yrs

Naritomo Ikeue

TITLE
Executive VP
AGE
47
TENURE
16.2 yrs

Hideki Takeda

TITLE
CTO, Director of Behavior Informatics Laboratories & Director
AGE
46
TENURE
3.7 yrs

Hirooki Kirisawa

TITLE
Outside Director
AGE
53
TENURE
9.7 yrs

Masahiro Morimoto

TITLE
Founder
AGE
53
TENURE
16.5 yrs

Makoto Funahashi

TITLE
Outside Director
AGE
74
TENURE
11.7 yrs

Tim Cronin

TITLE
Member of Advisory Board

Laura Kyriazis

TITLE
Member of Advisory Board

Takaharu Yasumoto

TITLE
Outside Statutory Auditor
AGE
65
TENURE
9.7 yrs

Kunihiro Sudo

TITLE
Standing Statutory Auditor
AGE
74
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess FRONTEO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FRONTEO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FTEO News

Simply Wall St News

FTEO Company Info

Description

FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in Japan, the United States, Korea, and internationally. The company operates through LegalTech AI Business and AI Solution Business segments. It has eDiscovery and forensic information documented in Japanese, Korean, Chinese, and English. The company assists clients involved in cross-border litigation, administrative proceedings, and internal investigations, including those related to antitrust investigations, intellectual property litigation, the Foreign Corrupt Practices Act, and product liability investigations. It also provides Lit i View, an online eDiscovery software, which handles Asian-language characters, encoding schemes, and native file systems; and Intelligence Cloud solution to address the substantial complexity and cost associated with international investigations and litigations. In addition, the company offers electronic data forensic investigation solutions and services that enable the preservation, analysis, processing, and production of electronically stored information in connection with fraud and corporate information leakage; and Lit i View XAMINER, a digital forensic software, and other related hardware and software products; and forensic tools. Further, it helps to create document management procedures; conduct corporate risk audits; and comply with legal requirements to provide information to stakeholders. Additionally, the company provides AI solutions in the fields of business intelligence, healthcare, and digital communications. It serves enterprises, government agencies, law firms, corporate legal departments, and other professional advisors under the FRONTEO, KIBIT, Lit i View, and Landscaping brands. The company was formerly known as UBIC, Inc. and changed its name to FRONTEO, Inc. in July 2016. FRONTEO, Inc. was founded in 2003 and is headquartered in Tokyo, Japan.

Details
Name: FRONTEO, Inc.
FTEO
Exchange: NasdaqGS
Founded: 2003
¥110,792,727
38,149,166
Website: http://www.fronteo.com
Address: FRONTEO, Inc.
Meisan Takahama Building,
2-12-23 Konan,
Tokyo,
108-0075,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 2158 Common Shares The Tokyo Stock Exchange JP JPY 26. Jun 2007
OTCPK FNTO.F Common Shares Pink Sheets LLC US USD 26. Jun 2007
NasdaqGS FTEO SPONSORED ADR Nasdaq Global Select US USD 15. May 2013
Number of employees
Current staff
Staff numbers
387
FRONTEO employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/02/14 01:02
End of day share price update: 2020/02/12 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/11/14
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.